Illinois  )  SENATE.  (HthAssem. 

Legis.  £  2d  Session. 


DOCUMENTS 


REFERRED  TO 


IN  THE  MESSAGE  OF  THE  GOVERNOR, 


AT  THE 


OPENING  OF  THE  SESSION 


OF  THE 


GENERAL  ASSEMBLY. 


Transmitted  to  the  House,  December  13,  1839. 


\ 


SPRINGFIELD : 

William  Walters,  Public  Printer. 

1839. 


[2] 


t 


DOCUMENTS. 


Springfield,  December  21,  1839. 

Sir  :  I  have  the  honor  herewith  to  transmit  to  the  Senate 
a  statement  from  the  Secretary  of  the  Board  of  Fund  Commis¬ 
sioners,  showing  the  amount  of  drafts  paid  by  the  Fund  Commissioners 
from  the  24th  day  of  December,  1838,  marked  A,  together  with  copies 
of  the  contracts  for  loans  referred  to  in  my  message  of  Wednesday 
last,  except  document  referred  to  marked  C,  which  was  to  have  been 
furnished  me  by  the  State  Bank,  and  which  has  not  yet  been  done ;  as 
soon  however  as  it  is  procured  it  shall  be  transmitted. 

Document  marked  D.  referred  to,  being  a  copy  of  contract  for  $500,000, 
between  John  Reynolds,  agent  for  the  State,  and  Anson  H.  Bangs  on  be¬ 
half  of  the  Farmers’  and  Mechanics’  Bank  of  Onondaga,  State  of  New 
York,  located  at  Fayetteville,  is  superseded  by  the  accompanying  do¬ 
cument  marked  D. 

The  voluminous  character  of  those  documents  and  the  necessity  of 
carefully  preserving  the  originals,  prevented  me  from  furnishing  them  to 
your  honorable  body  at  the  time  1  transmitted  my  message. 

1  have  the  honor  to  be,  Sir, 

Your  most  obedient  servant, 

THOMAS  CARLIN. 

To  the  Honorable  the  Speaker 

Of  the  Senate. 


Fund  Commissioners’  Office, 

Springfield ,  2 6th  November ,  1839. 

Gov.  Thomas  Carlin, 

Dear  Sir:  You  will  please  find  herewith  enclosed  the  statement 
made  out,  I  trust,  agreeably  to  your  request  and  wishes,  as  far  as  docu¬ 
ments  in  this  office  furnish  the  means.  Not  having  received  any  accounts 
from  the  Bank  of  Philadelphia  and  New  York,  respecting  the  payments 
made  by  them  for  interest  due  on  State  Bonds  in  July  last,  I  have  not 
attempted  to  furnish  any  interest  account. 

The  Fund  Commissioners  will  meet  here  in  time  to  have  prepared  by 
the  meeting  of  the  Legislature,  a  full  and  detailed  report  of  all  the  vari- 

LIBRARY  . 

UNIVERSITY  OF  ILLINOIS 


4 


) 

[20] 

ous  transactions  they  have  had  with  the  banks  of  the  eastern  cities  and 
banks  of  this  State,  and  also  an  account  of  all  the  incidental  expenses 
necessarily  incurred  during  their  absence  from  the  State. 

The  Fund  Commissioners  have  made  arrangements  for  paying  the  in¬ 
terest  becoming  due  (on  State  Bonds  heretofore  sold  by  them,)  on  the  1st 
January,  1840,  and  payable  in  Philadelphia  and  New  York.  They  have 
requested  me  to  inform  you  that  no  provisions  had  been  made  by  them 
to  pay  the  interest  on  the  canal  bonds,  as  they  were  informed  by  Co¬ 
lonel  Mather  that  the  Canal  Commissioners  had  provided  or  would  pro¬ 
vide  funds  for  that  purpose. 

1  have  the  honor  to  be, 

Most  respectfully,  your  ob’t  servrt., 

WILLIAMSON  GATEWOOD,  Secy 


* 


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5 


[21] 


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18 


STATEMENT— Continued. 


$56,530 

280,755 

50,517 

16,616 

485,510 

4,043 


19 

88 

52 

00 

50 

26 


RECAPITULATION. 

Amount  charged  to  Alton  and  Hillsboro’  railroad 
Amount  charged  to  Central  railroad 

Amount  charged  to  Bloomington,  Pekin  &c.  railroad  - 
Amount  charged  to  Illinois  river 
Amount  charged  to  Northern  Cross  railroad 
Amount  charged  to  Kaskaskia  river 

Amount  charged  to  Alton,  Shawneetown  and  Mount  Car¬ 
mel  railroad  - 

Amount  charged  to  Great  Western  mail  route 
Amount  charged  to  Little  Wabash  river 
Amount  charged  to  Central  Branch  railroad 
Amount  charged  to  Great  Wabash  river 
Amount  charged  to  Peoria  and  Warsaw  railroad 
Amount  charged  to  Rushville  and  Erie  railroad 
Amount  charged  to  Rock  river  - 

Amount  paid  by  the  Fund  Commissioners  for  lands  enter¬ 
ed  by  William  Kinney,  not  charged  to  any  particular 
work  - 


194,046  73 
51,952  57 
41,000  00 
42,715  00/ 
10,615  00 
75,748  27 
600  00 
34,284  37 


25,079  35 


Aggregate  paid  by  the  Fund  Commissioners,  upon  drafts  and  orders 
of  the  Commissioners  of  the  Board  of  Public  Works  since  the 
24th  December,  1838  - 

Amount  paid  under  the  Internal  Improvement  acts  of  the  General  As¬ 
sembly,  passed  in  1837,  and  1839,  to  counties  which  no  railroad 
or  canal  passes  through,  since  24th  December,  1838  - 

Amount  paid  to  the  Commissioners  of  the  Illinois  and  Michigan  canal, 
under  the  act  of  Assembly,  passed  January  22,  1839 


1,370,014  64 

47,281  99 
300,000  00 


Amount  of  disbursements,  as  far  as  accounts  have  been  received  at 


this  office 


-  $1,717,296  63 


Note. — The  foregoing  statement  will  not  exhibit  correctly  the  amount  disbursed  on 
each  of  the  different  public  works.  The  drafts  of  the  acting  commissioners  of  public 
works,  always  state  for  what  work  the  money  is  drawn,  but  they,  the  commissioners,  fre¬ 
quently  pay  it  out  to  other  works  than  the  one  mentioned  in  the  draft.  All  the  accounts 
for  disbursements  actually  made  on  each  separate  work  are  kept  in  the  Central  office, 
and  will  be  furnished  to  you  by  the  Secretary  of  the  Board  of  Public  Works. 


19 


[35]- 


STATEMENT— Continued. 

STATEMENT  showing  the  amount  of  funds  remaining  on  hand  on  the  24th 
day  of  December ,  1838 ;  the  amount  that  has  become  available  since  that  peri¬ 
od ;  also ,  the  amount  of  State  Bonds  disposed  of  by  the  Fund  Commissioners , 
as  far  as  the  accounts  have  been  received  at  this  office . 


1838. 

Dec.  24 

Amount  remaining  in  the  different  deposite  banks 

$1,019,604  04 

1839. 

Jan.  1 

Do  of  dividends  received  from  the  Bank  of  Illinois  - 

35,000  00 

July  1 

Do  u  do  u  u  do 

40,000  00 

June  12 

Do  u  do  “  “  State  Bank  of  Illinois  - 

80,000  00 

July  1 

Amount  to  the  credit  of  the  Fund  Commissioners  in  the 

U.  S.  Bank,  being  1st  instalment  on  a  sale  of  State  bonds 
made  by  Canal  Commissioners  to  the  New  York  Bank- 

• 

ing  Company  ------ 

50,000  00 

Oct. 

Amount  to  the  credit  of  Fund  Commissioners  in  the  Bank 
of  Illinois,  being  the  2d  and  3d  instalments  on  said  loan 

by  the  New  York  Banking  Company  - 
Amount  to  the  credit  of  the  Fund  Commissioners  in  the 

100,000  00 

Bank  of  Illinois,  for  interest  and  premium  on  exchange  - 

8,514  55 

May 

Amount  of  State  bonds  sold  by  the  Fund  Commissioners  to 

the  New  York  Banking  Company  - 

283,000  00 

Sept.  12 

Amount  of  State  bonds  sold  by  the  Fund  Commissioners 

to  the  Farmers’  &  Mechanics’  Bank  of  Onandaga,  N.  Y. 

250,000  00 

Oct.  2 

Amount  of  State  bonds  sold  and  delivered  to  same  bank 

50,000  00 

2 

Amount  of  State  bonds  sold  to  the  Bank  of  Commerce,  at 

Buffalo,  New  York. 

100,000  00 

2 

Amount  of  State  bonds  sold  to  the  Erie  county  Bank,  at 

Buffalo,  New  York  ----- 

100,000  00 

2 

Amount  of  State  bonds  sold  to  the  Commercial  Bank,  at 

Buffalo,  New  York  - 

100,000  00 

2 

Amount  of  State  bonds  sold  to  the  Atlantic  Bank  in  the 

city  of  New  York  ----- 

150,000  00 

June  12 

Amount  of  State  bonds  sold  to  Messrs.  January  A  Dunlap, 

contractors  on  the  Northern  Cross  railroad 

100,000  00 

Sept. 

Amount  of  State  bonds  sold  to  the  same  gentlemen 

100,000  00 

$2,566,118  59 

Col.  Mather,  on  his  return  from  New  York,  placed  to  the  credit  of  the  Fund  Commis¬ 
sioners  in  the  State  Bank  of  Illinois,  the  sum  of  $30,000,  which  was  paid  in  New  York, 
from  some  of  the  late  loans  made  by  the  Fund  Commissioners,  $25,000  of  the  same  has 
been  paid  to  the  Bank  of  Illinois,  in  part  for  advancements  by  that  institution  to  the 
Commissioners  of  the  Board  of  Public  Works,  and  the  Fund  Commissioners  are  making 
arrangements  to  reimburse  the  whole  amount  so  advanced  by  said  Bank. 

Note. — Mr.  Tillson  writes  me  from  New  York,  October  26,  that  the  Farmers’  and 
Mechanics’  Bank  of  Onandaga,  New  York,  had  not,  up  to  that  date,  made  any  payment 
under  the  contract  for  the  250  State  Bonds,  the  first  instalment  was  due  on  the  first  of 
October  last. 


20 


Certificates  of  the  Secretary  of  the  Board  of  Public  Works, 


Fund  Commissioners’  Office, 

Springfield ,  November  26,  1839. 

1  certify  that  the  foregoing  statements  contain  a  true  account  of  all 
the  disbursements  and  receipts  of  the  Fund  Commissioners  since  the 
24th  December  last,  as- far  as  the  accounts  have  been  received  at  this 
office,  and  also  all  loans  obtained  and  reported  by  them  since  that 
period. 

WILLIAMSON  GATEWOOD,  Sec,  B.  F.  C. 


Fund  Commissioners’  Office, 

Springfield ,  December  10,  1839. 

I  would  further  state,  that  since  furnishing  the  above,  the  Fund 
Commissioners  have  filed  in  this  office  a  contract  made  with  Messrs. 
Wright  &  Co.,  in  London,  by  which  the  Fund  Commissioners  are 
bound  to  forward  to  that  house,  bonds  to  the  amount  of  $>1,500,000,  by 
the  first  day  of  January  next,  (and  which  have  been  already  forwarded) 
that  being  the  amount  of  requisitions  made  by  the  Board  of  Public 
Works  for  the  year  1839.  By  a  construction  of  the  Internal  Improve¬ 
ment  laws,  (in  England,)  it  was  believed  that  the  Fund  Commissioners 
were  not  authorized  to  contract  for  a  larger  amount  than  the  requisition 
called  for.  For  the  balance  of  $4,000,000,  (say  $2,500,000,)  a  condi¬ 
tional  contract  is  also  filed  in  this  office,  to  be  completed  when  requisi¬ 
tions  have  been  made  by  the  Board  of  Public  Works  for  that  amount. 
On  receipt  of  the  $1,500,000  in  bonds  by  Messrs.  Wright  &  Co.,  the 
Fund  Commissioners  are  authorized  to  make  drafts  on  them  for  £50,000 
sterling.  The  Fund  Commissioners  have  also  filed  in  this  office  a 
contract  made  with  Messrs.  Thompson  &  Forman,  of  London,  by  which 
they  are  bound  to  furnish  9,500  tons  railroad  iron  at  £9  10  00  sterling 
per  ton,  the  first  shipment  to  be  made  (say  to  the  amount  of  £10,000,) 
so  soon  as  the  above  bonds  are  received  by  Messrs.  Wright  &  Co. 
The  contracts  are  so  made  that  all  the  bonds  are  to  produce  to  the  State 
of  Illinois,  par. 

WILLIAMSON  GATEWOOD,  Sec  B,  F.  C, 


21 


[37]  * 


B. 

Contract  with  John  Delafield  for  the  loan  of  $)300,Q00. 

Article  of  agreement,  made  this  twenty-third  day  of  April,  in  the 
year  one  thousand  eight  hundred  and  thirty-nine,  between  Moses  M. 
Rawlings  and  John  Reynolds,  Commissioners  appointed  by  the  Governor 
of  the  State  of  Illinois,  to  effect  the  sale  of  certain  bonds  hereinafter 
described,  parties  of  the  first  part,  and  John  Delafield,  of  the  city  and 
State  of  New  York,  banker,  party  of  the  second  part,  witnesseth:  That 
the  said  parties  of  the  first  part,  by  virtue  of  the  power  and  authority 
in  them  vested,  and  for  and  in  consideration  of  the  covenants  and 
agreements  on  the  part  and  behalf  of  the  said  party  of  the  second  part, 
hereinafter  expressed,  to  be  kept  and  performed,  have  granted,  bargained, 
sold,  assigned,  transferred  and  set  over,  and  by  these  presents  do  grant, 
bargain,  sell,  assign,  transfer,  and  set  over  unto  the  said  John 
Delafield  three  hundred  bonds  or  certificates  of  State  indebtedness, 

issued  by  the  State  of  Illinois,  numbered  from  — - to - both 

inclusive,  each  for  the  sum  of  one  thousand  dollars,  and  of  the  tenor 
and  effect  following,  viz  : 

Know  all  men  by  these  presents,  that  there  is  due  from  the  State  of 
Illinois,  to  the  State  Bank  of  Illinois,  or  bearer,  one  thousand  dollars, 
lawful  money  of  the  United  States,  with  interest  at  the  rate  of  six  per 
centum  per  annum,  payable  half  yearly  on  the  first  Mondays  of  January 
and  July,  at  the  Bank  of  the  United  States  in  Philadelphia,  or  at  its 
agency  in  New  York,  at  the  option  of  the  holder ;  on  the  presentation 
and  surrender  of  the  annexed  warranty;  the  principal  is  reimbursable  at 
either  of  the  above  places  at  the  pleasure  of  the  State,  after  the  year 
one  thousand  eight  hundred  and  sixty ;  for  the  performance  of  all 
which  the  faith  of  the  State  of  Illinois  is  irrevocably  pledged,  as  also 
the  properly,  tolls  and  revenue  of  the  Illinois  and  Michigan  canal, 
agreeably  to  an  act  entitled  “An  act  for  the  construction  of  the  Illinois 
and  Michigan  canal,”  approved  the  ninth  of  January  one  thousand 
eight  hundred  and  thirty-six,  and  which  said  bonds  are  signed  by  the 
Governor,  Auditor  and  Treasurer  of  the  State  of  Illinois,  and  have  the 
seal  of  the  said  State  affixed,  and  bear  date  the  first  day  of  July,  one 
thousand  eight  hundred  and  thirty-seven,  to  have  and  to  hold  the  said 
bonds  and  the  money  thereby  secured  or  intended  to  be,  with  the  interest, 
and  all  the  right,  title,  and  interest  appertaining  thereto,  or  in  anywise 
appertaining,  unto  the  said  John  Delafield,  his  executors,  administrators, 
and  assigns,  to  his  and  their  own  proper  use,  benefit  and  behoof  forever; 
and  the  said  parties  of  the  first  part  have  made,  constituted  and  appoint¬ 
ed,  and  do  hereby  make,  constitute  and  appoint  the  said  John  Delafield 
their  true  and  lawful  attorney  for  the  said  State  Bank  of  Illinois,  and 
in  its  name,  place  and  stead,  to  do  all  necessary  and  proper  acts  for 
collecting  the  said  bonds  and  interest  when  payable  according  to  the 
tenor  and  effect  thereof,  and  in  case  of  default  therein,  to  take  all 
proper  means  and  ways  to  recover  the  amount  secured  thereby,  or 
intended  to  be,  and  the  interest  thereon.  And  the  said  parties  of  the 
first  part  further  covenant  and  agree  that  interest  shall  commence 


22 


#  [38] 

running  on  the  said  bonds  in  favor  of  the  holders  thereof  from  the  day 
of  their  delivery  to  said  party  of  the  second  part,  and  that  they  shall 
be  delivered  to  the  party  of  the  second  part  in  New  York,  on  or  before 
the  tenth  day  of  June  next.  And  the  said  party  hereto  of  the  second 
part,  for  and  in  consideration  of  the  premises,  and  of  one  dollar  to  him 
in  hand  paid  by  the  said  parties  of  the  first  part,  the  receipt  whereof  is 
hereby  acknowledged,  does  in  like  manner  covenant  and  agree  to  and 
with  the  said  parties  of  the  first  part,  that,  upon  the  delivery  to  him 
of  the  said  bonds  in  due  form  and  properly  executed,  he  will  give 
therefor  the  sum  of  three  hundred  thousand  dollars,  and  pay  the  same 
in  manner  following,  that  is  to  say — first,  that  within  fifteen  days 
after  the  delivery  to  him  of  the  said  bonds  in  manner  aforesaid,  he  will 
place  to  the  credit  of  M.  M.  Rawlings,  as  Fund  Commissioner  of  the 
State  of  Illinois,  in  the  New  York  Banking  Company  of  the  city  of 
New  York,  the  sum  of  fifty  thousand  dollars  subject  to  be  drawn  for 
by  the  party  entitled  so  to  do  by  drafts  on  said  Banking  Company,  at 
not  less  than  ten  days  sight. 

Secondly.  That  he  will  pay  at  New  York  aforesaid,  the  further  sum 
of  fifty  thousand,  part  of  said  three  hundred  thousand  dollars  to  said 
Bank  of  Illinois,  or  its  authorized  agent,  on  the  first  day  of  August  next, 
in  banknotes  of  some  bank  or  banking  association  of  the  city  of  New 
York,  of  denomination  not  exceeding  ten  dollars,  and  in  such  propor¬ 
tion  as  regards  the  denomination,  as  the  said  party  of  the  second  part 
mav  choose. 

Thirdly.  That  in  manner,  and  at  the  place  last  mentioned,  he  will  pay  the 
further  sum  of  fifty  thousand  dollars  on  the  first  day  of  September  next; 
the  further  sum  of  fifty  thousand  dollars  on  the  first  day  of  October 
next ;  the  further  sum  of  fifty  thousand  dollars  on  the  first  day  of 
November  next;  and  the  remainder,  to  wit,  the  sum  of  fifty  thousand 
dollars,  on  the  first  day  of  January,  in  the  year  one  thousand  eight 
hundred  and  forty. 

In  witness  whereof,  the  said  parties  to  these  presents  have  hereunto 
set  their  hands  and  seals,  the  day  and  year  first  above  written. 

M.  M.  RAWLINGS,  for  the  State  of  Illinois.  [l.  s.] 
JOHN  REYNOLDS,  Agent  for  State  of  Illinois .  [l.  s.] 

J.  DELAFIELD,  [l.  s.] 

Sealed  and  delivered  in  presence  of  ) 

Edgar  S.  Van  Winkle.  ( 


Contract  with  the  Bank  of  the  United  States  for  the  loan  of  $1,000,000. 

This  agreement,  made  at  Philadelphia,  this  29th  day  of  April,  1839, 
witnesseth:  That  the  undersigned  commissioners,  duly  empowered  in 
pursuance  of  law  by  the  Governor  of  the  State  of  Illinois,  have  this 
day  sold,  and  the  undersigned,  Thomas  Dunlap,  has  bought  one 
million  of  dollars  of  the  Illinois  and  Michigan  canal  stock,  to  be  issued 
in  sterling  bonds  of  9f225  each,  with  coupons  attached  for  the  payments 
of  the  interest  annually,  at  six  per  centum;  interest  to  commence  on 
the  first  day  of  July,  1 839;  said  bonds  reimbursable  by  the  State  of 


23 


[39] 

Illinois  on  the  first  day  of  July,  1870,  both  principal  (at  the  rate  of 
4  —  6  sterling  to  the  dollar)  and  interest  payable  at  the  banking 
house  of  the  agency  of  the  Bank  of  the  United  States  in  London; 
and  the  said  commissioners  agree  to  deliver  to  the  said  Thomas  Dunlap, 
in  Philadelphia,  the  whole  of  the  said  bonds  for  one  million  of  dollars, 
as  above,  as  soon  as  they  can  be  executed  and  returned,  not  exceeding 
forty-five  days  from  this  date;  and  the  said  Thomas  Dunlap  agrees  to 
pay  to  the  said  commissioners  for  the  use  of  the  State  of  Illinois,  or 
to  their  order  for  the  sai'd  stock,  the  sum  of  one  million  of  dollars  in 
ten  equal  instalments  of  one  hundred  thousand  dollars  each,  monthly; 
the  first  monthly  payment  of  $100,000  to  be  made  on  the  delivery  of 
the  whole  of  the  said  bonds;  said  payments  to  be  made  without  interest, 
and  to  be  made  in  ten  dollar  notes  of  the  Bank  of  the  United  States, 
which  notes  shall  be  disbursed,  under  the  direction  of  the  said  commis¬ 
sioners,  on  the  public  works  of  their  State,  in  actual  payments  to  those 
employed  thereon.  Executed  in  good  faith,  at  the  city  of  Philadelphia, 
this  twenty-ninth  of  April,  A.  D.  1839.  Witness  our  hands  as  above 
described. 

M.  M.  RAWLINGS,)  Commissioners 

JOHN  REYNOLDS,)  State  of  Illinois . 

J.  DUNLAP, 

Witness  present, 

Thomas  S.  Taylor. 


April  29,  1839.  The  said  Thomas  Dunlap  has  this  day  advanced  to 
us,  in  consequence  of  the  pressing  demands  of  the  work  on  the  canal, 
the  sum  of  one  hundred  thousand  dollars,  the  first  instalment  mentioned 
in  the  foregoing  memorandum  of  contracts  in  anticipation  of  the 
delivery  of  the  bonds,  and  we  hereby  acknowledge  the  receipt  of  the 
said  $100,000,  and  agree  for  ourselves  and  our  constituents,  that  interest 
upon  this  sum,  at  the  rate  of  six  per  cent.,  shall  be  allowed  to  the  said 
Thomas  Dunlap,  from  this  date  until  the  delivery  of  the  whole  of  the 
bonds  is  made  to  him  and  credited  upon,  and  deducted  from  his  second 
monthly  payment  under  the  foregoing  contract;  and  in  the  event  of 
any  accident  preventing  the  delivery  of  the  said  bonds,  we  bind  our¬ 
selves  and  the  State  of  Illinois  to  return  to  the  said  Thomas  Dunlap  the 
said  sum  of  $100,000,  with  lawful  interest  until  paid.  Witness  our 
hands,  the  date  last  above  mentioned. 

M.  M.  RAWLINGS,)  Commissioners  of 
JOHN  REYNOLDS,)  the  State  of  Illinois. 
J.  DUNLAP, 

Witness  present  > 

Thomas  S.  Taylor.) 

On  behalf  of  the  Bank  of  the  United  States,  I  do  hereby  guarantee 
the  faithful  performance  of  the  foregoing  contract  by  the  said  Thomas 

Dunlap. 

J.  CONPERTHWART,  Cashier . 

Philadelphia,  April  29,  1839. 


[40] 


24 


D. 

Article  of  agreement  between  John  Reynolds ,  Agent  for  the  State ,  and  the 
President ,  Directors  Company,  of  the  State  Bank  of  Illinois . 

An  article  of  agreement  made  and  entered  into  this  eighteenth  day  of 
September,  one  thousand  eight  hundred  and  thirty-nine,  by  and  between 
John  Reynolds,  agent  for  and  on  part  of  the  State  of  Illinois,  appointed 
by  the  Governor  of  said  State,  by  authority  of  an  act  of  the  General  As¬ 
sembly,  passed  on  the  twenty-third  day  of  February,  of  this  same  year,, 
and  entitled  “An  act  to  provide  for  loan  for  canal  purposes,”  of  the  one 
part,  and  the  President,  Directors  and  Company  of  the  State  Bank  of 
Illinois,  of  the  other  part,  witnesseth:  That  the  said  John  Reynolds  agrees 
and  binds  the  State  aforesaid,  to  deliver  to  the  said  President,  Directors 
and  Company  of  said  Bank  in  the  State  of  Illinois,  at  their  banking-house 
in  Springfield,  or  their  agent  in  the  city  of  New'  York,  at  their  choice,, 
sterling  bonds  of  the  said  State  of  Illinois,  to  the  amount  of  one  million 
of  dollars,  to  be  delivered  as  aforesaid  on  or  before  the  first  of  January 
next,  for  safe  keeping,  and  to  be  disposed  of  as  himself,  agent,  or  by  the 
parties  to  this  contract,  said  bonds  being  and  containing  two  hundred 
and  twenty-five  pounds  each,  of  British  currency,  equal  to  one  thousand 
dollars  currency  of  the  United  States, ]  and  containing  a  blank  for  the 
place  of  paying  the  principal  and  interest,  said  interest  being  at  the  rate 
of  six  per  cent,  per  annum,  and  the  said  bonds  payable  in  the  year 
eighteen  hundred  and  seventy;  the  said  John  Reynolds  agrees  further 
on  the  part  of  the  State  with  the  President,  Directors  and  Company  of 
said  bank,  to  pay  the  principal  at 

in  the  said  ci,ty  of  New  York  as  said  bonds  are  due  and  payable;  and 
the  interest  semi-annually  on  said  bonds  after  the  interest  accrues  on 
them  at  the  place  mentioned  above  in  the  said  city  of  New  York,  the 
bank  paying  the  interest  on  the  State  furnishing  the  means  to  do  it  in 
funds  current  in  said  city. 

In  consideration  thereof,  the  said  President,  Directors  and  Company 
of  the  State  Bank  of  Illinois,  agree  and  bind  the  said  bank  to  pay 
to  the  Governor  of  said  State  of  Illinois,  or  his  agent,  one  million  of 
dollars  of  the  paper  of  said  bank  in  post  notes  thereof,  at  the  following 
periods  and  in  the  following  manner,  to  wit :  on  the  first  days  of  the 
months  of  January,  February  and  March  next,  fifty  thousand  dollars, 
on  each  of  those  days,  amounting  in  all  to  one  hundred  and  fifty  thou¬ 
sand  dollars  of  said  notes  of  said  bank;  on  the  first  days  of  the  months 
of  April,  May,  June,  July,  August,  September,  and  October  next,  in  the 
year  eighteen  hundred  and  forty,  seventy-five  thousand  dollars  on  each 
of  said  days,  amounting  in  all  to  the  sum  of  five  hundred  and  twenty- 
five  thousand  dollars  of  said  notes;  on  the  first  days  of  the  months  of 
November  and  December,  in  said  year  eighteen  hundred  and  forty,  fifty 
thousand  dollars  on  each  of  said  days,  amounting  in  all  to  one  hundred 
thousand  dollars  of  said  notes;  on  the  first  days  of  January  and  Februa¬ 
ry,  in  the  year  eighteen  hundred  and  forty-one,  fifty  thousand  dollars  on 
each  of  said  days,  amounting  in  all  to  one  hundred  thousand  dollars  of 
said  notes;  and  on  the  first  day  of  March  of  said  year,  seventy-five 


25 


[41] 

thousand  dollars  of  said  notes;  and  on  the  first  day  of  April  of  said' 
year,  fifty  thousand  dollars  of  said  notes;  all  of  which  said  instalments,, 
amounting  to  one  million  of  dollars  as  aforesaid;  said  notes  are  to  be 
payable  six  months  from  and  after  demand,  and  at  any  time  on  one 
thousand  dollars  of  said  notes  being  presented,  the  same  may  be  paid  in 
the  bonds  of  the  State  at  par,  at  the  option  of  the  holder,  and  the  same 
to  be  received  at  all  times  by  the  Bank  for  debts  due  the  Bank;  said 
payments,  as  abovementioned,  are  to  be  made  at  the  State  Bank  at 
Springfield,  Illinois,  or  at  such  of  the  Banks  thereof  in  said  State,  as  the 
Governor  of  the  State  and  the  Bank  may  agree  upon. 

It  is  further  agreed  by  said  parties  that  the  interest  on  said  bonds  of 
the  State,  is  to  commence  accruing  and  running  from  and  after  the 
respective  periods  when  said  instalments  are  paid  by  the  Bank  to  the 
State,  so  that  the  State  pays  no  interest  on  said  bonds  until  the  respective 
payments  are  made. 

It  is  further  agreed  by  said  parties  that  the  said  bonds  are  to  remain 
in  the  custody  of  said  Bank  until  the  respective  payments  are  made  under 
the  stipulation  of  this  contract,  and  then  the  amount  so  paid  for  to  be 
delivered  over  to  the  said  Bank  for  the  payment  of  the  amount,  and 
then  and  not  before,  to  become  the  property  of  the  Bank.  The  safe¬ 
keeping  and  delivery  of  the  bonds  are  to  be  done  free  of  expense  to  the 
State,  at  any  of  the  said  Banks;  and  may  have  the  sterling  bonds  exchang¬ 
ed  for  dollar  bonds  on  paying  the  necessary  expenses  for  the  same  and 
delivering  the  sterling  bonds  to  the  State  in  lieu  of  the  others. 

It  is  further  agreed  that  if  from  any  cause  said  notes  should  depreciate 
so  as  not  to  answer  the  purposes  of  paying  the  contractors  and  other 
disbursements  of  the  canal,  the  Governor,  in  such  case,  may  annul  this 
contract.  In  testimony  whereof,  the  said  agent  of  the  State,  and  Presi¬ 
dent  of  said  Bank  have  hereunto  set  their  names. 

JOHN  REYNOLDS,  [l.  s.] 

THOMAS  MATHER,  P.  S.  P.  of  111 .  [l.  s.] 


Whereas,  Thomas  Mather  on  the  part  of  the  State  Bank  of  Illinois^ 
and  John  Reynolds  as  agent  for  the  State  of  Illinois,  have,  on  the  eigh¬ 
teenth  inst.,  proposed  a  certain  contract  for  the  sale  of  one  million  of 
State  bonds  to  carry  on  the  works  of  the  canal  in  said  State,  to  the  Go¬ 
vernor  of  said  State  for  his  approval,  and  to  the  Bank  at  Springfield,  also, 
for  their  ratification,  in  case  either  of  the  parties  does  not  approve  of 
said  contract,  the  same  is  null  and  void. 

THOMAS  MATHER,  [l.s.] 

JOHN  REYNOLDS,  Ag’tfor  the  State ,  [l.  s.] 
September  19th,  1839. 


Article  of  agreement  between  John  Reynolds  and  Anson  H.  Bangs . 

An  agreement  made  and  entered  into  this  nineteenth  day  of  Septem¬ 
ber,  one  thousand  eight  hundred  and  thirty-nine,  by  and  between  John 


26 


[42] 

Reynolds,  agent  for  the  State  of  Illinois,  of  the  one  part,  and  Anson  H. 
Bangs,  President  of  the  Bank  United  States  at  Syracuse,  State  of  New 
York,  of  the  other  part,  witnesseth:  That  the  said  John  Reynolds  agrees 
and  binds  the  State  of  Illinois  to  deliver  to  the  said  bank,  one  hundred 
bonds  of  the  State  of  Illinois,  for  the  Illinois  and  Michigan  canal  on 
the  first  day  of  December  next,  and  twenty-five  bonds  every  thirty  days 
thereafter,  until  the  whole  number  shall  amount  to  five  hundred  bonds 
sterling  money  of  Great  Britain,  containing  each  one,  two  hundred  and 
twenty-five  pounds  sterling,  equal  to  one  thousand  dollars  United  States 
currency.  The  interest  on  said  bonds  is  to  be^ix  per  cent,  per  annum, 
payable  quarter-yearly,  at  the  Bank  of  the  United  States  in  New  York 
city.  The  principal  is  reimbursable  at  the  pleasure  of  the  State  of  Illi¬ 
nois,  after  the  year  eighteen  hundred  and  sixty;  said  bank  is  to  pay  the 
State  of  Illinois  twenty-five  thousand  dollars  on  the  first  day  of  Februa¬ 
ry,  eighteen  hundred  and  forty,  and  twenty-five  thousand  dollars  at  the 
end  of  every  thirty  days  thereafter,  until  the  whole  sum  shall  amount  to 
five  hundred  thousand  dollars  in  current  bank  notes  of  the  State  of  New 
York,  of  the  denomination  of  five  dollars,  which  are  to  be  taken  to  the 
State  of  Illinois,  and  paid  out  to  the  contractors  on  the  canal  in  said 
State;  said  bank  reserves  the  privilege  of  making  the  payments  when 
they  become  due,  in  notes  of  the  State  Bank  of  Illinois,  or  the  Illinois 
Bank  at  Shawneetown,  the  principal  on  said  bonds  is  payable  when  due 
in  the  city  of  New  York.  It  is  understood,  if  it  should  become  neces¬ 
sary  to  guarantee  to  the  State  of  Illinois,  the  delivery  of  the  above  notes, 
the  bank  is  to  give  the  Governor  of  the  State  of  Illinois,  or  his  agent, 
satisfactory  security.  In  testimony  whereof,  the  said  John  Reynolds  as 
agent,  and  the  said  Anson  H.  Bangs,  on  the  part  of  said  bank,  has  signed, 
sealed  and  delivered  this  agreement. 

JOHN  REYNOLDS,  Agent,  [l.  s.] 
ANSON  H.  BANGS,  [l.  s.] 

Witnessed,  in  presence  of  I 
Henry  W.  Depuv.  ( 


Article  of  agreement  between  John  Reynolds ,  agent ,  and  Anson  H.  Bangs ,  on 
behalf  of  the  Farmers ’  and  Mechanics ’  Bank ,  Onandaga ,  JVew  York. 

An  agreement  made  and  entered  into  this  nineteenth  day  of  Septem¬ 
ber,  eighteen  hundred  and  thirty-nine,  by  and  between  John  Reynolds, 
agent  for  the  State  of  Illinois,  of  the  one  part,  and  Anson  H.  Bangs, 
on  behalf  of  the  Farmers’  and  Mechanics’  Bank  of  Onandaga,  State  of 
New  York,  Seated  at  Fayetteville,  of  the  other  part,  witnesseth:  That 
the  said  John  Reynolds  agrees  and  binds  the  State  of  Illinois  to  deliver 
to  the  said  Anson  H.  Bangs,  at  said  Bank,  fifty  State  bonds  of  the  State 
of  Illinois,  on  the  first  day  of  February,  1840,  and  fifty  bonds  every  sixty 
days  thereafter,  until  the  whole  shall  amount  to  five  hundred  bonds, 
sterling  money  of  Great  Britain,  containing  each  one,  two  hundred  and 
twenty-five  pounds  sterling,  equal  to  one  thousand  dollars  United 
States  currency:  the  interest  on  said  bonds  at  six  per  cent,  per  annum, 


27 


[43] 

payable  quarterly;  said  interest  is  to  be  paid  at  the  said  Farmers’  and' 
Mechanics’  Bank  until  the  whole  amount  is  paid,  and  after  that  period 
the  interest  and  principal  are  to  be  paid  in  the  city  of  New  York,  at 
such  place  as  said  Bank  may  designate;  said  Bank  is  to  pay  fifty 
thousand  dollars  on  the  first  day  of  April,  1840,  and  fifty  thousand 
dollars  at  the  end  of  every  sixty  days  thereafter,  until  the  whole  sum 
shall  amount  to  five  hundred  thousand  dollars;  the  interest  on  said  bonds 
to  be  paid  quarterly  by  the  said  Bank,  free  of  charge  to  the  State  of 
Illinois,  on  the  State  furnishing  the  amount  of  money  for  the  same,  during, 
and  until  the  said  bonds  are  paid  for,  and  after  that  time,  quarterly  in 
the  city  of  New  York,  the  said  Bank  paying  the  same  without  charge, 
as  above  mentioned,  on  the  State  furnishing  the  money  as  aforesaid. 
On  condition  thereof,  the  said  Anson  H.  Bangs,  on  behalf  of  said  Bank, 
agrees  and  binds  said  Bank  to  pay  and  deliver  to  the  Governor  of  the 
State  of  Illinois,  or  his  agent,  at  said  Bank  on  the  first  day  of  April, 
1840,  fifty  thousand  dollars  in  notes  of  said  Bank,  and  the  same  sum  of 
money  to  be  paid  at  the  end  of  every  sixty  days  thereafter,  until  the 
whole  shall  be  paid,  amounting  in  all  to  five  hundred  thousand  dollars; 
said  notes  are  to  be  on  demand  and  current  in  the  State  of  New  York 
and  Illinois,  and  one  half  of  said  payments  may  be  of  a  denomination 
of  below  five  dollars,  which  are  to  be  paid  out  by  the  State  of  Illinois 
to  the  contractors  on  the  line  of  the  canal;  it  is  understood,  if  it  should 
become  necessary  to  guarantee  to  the  State  of  Illinois  the  delivery  of  the 
above  notes,  the  said  Bank  is  to  give  the  Governor,  or  his  agent,  satis¬ 
factory  security.  In  testimony  whereof,  the  said  John  Reynolds,  as 
agent,  and  the  said  Anson  H.  Bangs,  on  the  part  of  the  said  Bank, 
have  signed,  sealed  and  delivered  this  agreement. 

JOHN  REYNOLDS,  Agent. 

ANSON  H.  BANGS,  on  behalf  of  the  Bank . 

Witness  in  presence  of ) 

Addison  Pratt,  > 

Thomas  Mather.  \ 


Bangs ’  and  Reynolds ’  conditions ,  fyc. 

Whereas,  Anson  H.  Bangs,  on  behalf  of  the  Farmers’  and  Mecha¬ 
nics’  Bank  at  Fayetteville,  in  the  State  of  New  York,  and  John  Rey¬ 
nolds,  on  the  part  of  the  State  of  Illinois,  have  written  and  signed  a 
contract  for  the  sale  of  five  hundred  State  bonds,  of  one  thousand  dol¬ 
lars  each  to  said  bank,  on  the  19th  September,  1839,  and  the  same  con¬ 
tract  is  laid  before  the  Governor  of  the  State  of  Illinois  for  his  approval, 
and  until  he  gives  his  assent  to  the  same  it  is  not  binding  on  either 
party. 

ANSON  H.  BANGS,  in  behalf  of  the  Bank ,  [l.  s.j 
JOHN  REYNOLDS,  Agent.  [l.  s.] 

September  19,  1839. 


[44] 


28 


A.  H.  Bangs  to  John  Reynolds . 

Astor  House,  New  York, 

September  21,  1839. 

Hon.  John  Reynolds, 

Dear  Sir:  Since  you  have  left  I  have  seen  the  law  in  relation  to 
small  bills,  and  am  satisfied  that  it  would  be  inconsistent  with  your  laws 
for  the  Governor  to  ratify  the  contract,  and  you  may  hereby  consider 
that  part  of  it  void.  Since  your  departure,  Mr.  Tillson  has  returned.  I 
am  at  present  dissatisfied  with  his  course,  and  if  he  does  not  do  as  I  think 
he  ought  to,  he  cannot  have  the  funds;  if  he  should  not,  I  am  ready  to 
take  your  bonds  as  soon  as  you  can  deliver  them.  I  wish  you  to  write 
to  me  in  relation  to  our  affair  at  Fayetteville. 

Your  friend, 

A.  H.  BANGS. 


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